10 Must Knows For Successful Crowdfunding

The Crowdfunding landscape is changing rapidly with new technologies and giving trends. There is a lot of attention on Crowdfunding in the United States because of the JOBS act, short for Jumpstart Our Business Startups, which allows the general public to receive company equity in exchange for funding business startups. AngelList and FundersClub were recently blessed by the SEC, and white-label Crowdfunding software solutions such as Katipult will help others produce similar innovative crowdfunding platforms.

The National Crowdfunding association of Canada (NCFA Canada) is working hard to fill a need to unify a broad-based an inclusive crowdfunding voice into a single national entity and to provide a forum for all businesses, industries and stakeholders across Canada. With organizations like the NCFA Canada providing awareness and advocacy, Canadians should soon be able to fund innovation through home-grown equity Crowdfunding platforms.

Here are 10 ways to engage supporters and ensure a successful crowdfunding campaign:

If you build it, they won’t come

You need an online fundraising strategy! Simply having a passive website to collect donations won’t deliver results. We want people to contribute their hard earned money because its fun and rewarding. Remember, raising money is only one half of the equation.

Define Results People want to feel like they can make an impact with their contribution. If the objective of your fundraising campaign can’t be measured or quantified, you’ll need to rethink it. To create a movement online you need a clear, well-articulated strategic plan that creates a sense of urgency and provides a definitive point of success. Although they are a major component of every project, people don’t like to think they are paying administrative costs.

Centralize your Project Its time to get organized! Create a hub for all your project information that you and your supporters can easily share through your social media channels. Store your campaign videos, photos, and blog posts. With everything in one place, web analytics will allow you to optimize your fundraising efforts.

The Story is EverythingYou need to connect with people and compel them to donate to your initiative. Learning to tell a story that others will share is an art, it’s the foundation of marketing and advertising. Understand the motivations behind your supporters, and communicate your message with emotion and clarity.

Your Network is Gold To create momentum you need to start grass roots, with those closet to you. With the rise of social media, a strong message can spread fast to a very large audience. Leverage your network. This is the essence of “Crowd Funding”.

Show the People Involved People always give to people. A personal connection with your project manager, and social validation from other supporters go a long way.

Share Your UpdatesThere is a reason why people love reality TV. Let your supporters live vicariously through you by sharing progress updates, and fun and touching moments throughout the project. This is how you will build a loyal following and develop stronger relationships. Again, there’s a better chance they’ll donate a second or third time if you do.

Learn to Celebrate Small Victories Project momentum. Every project can be structured with milestones, and tasks required to complete them. When you complete a milestone, you should dance in the streets and let all your supporters know that you’re one step closer to results. There’s a better chance they’ll donate a second or third time if you do.

Build a Following We know you’re busy multi-tasking your day-to-day, but it’s crucial to create an open line of communication with supporters by revealing milestone completions and other project updates.

Get Your Supporters to Spread the Word The biggest problem in fundraising isn’t getting people to give, it’s getting people to ask others to give. Provide rewards and incentives to your top referrers.

Brock covers domestic and international Crowdfunding trends. He is a founder of JOI Media and Board Member of the National Crowdfunding Association of Canada (NCFA Canada). Visit Katipult (www.katipult.com) to learn more about how you can create your own branded crowdfunding platform.

If you have a topic that could potentially change the crowdfunding landscape, we’d like to hear about it. Send us a tweet at @Katipult or email us at info@katipult.com.

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